Immigrant start-ups seen as key to reinventing Michigan

[begingri]

When it comes to reinventing Michigan, Gov. Rick Snyder has a clear message: The state needs more people like Thanh Tran and Vinay Gupta.

The two entrepreneurs -- one just starting out and the other with lots of experience -- are smart, talented immigrants trying to create more jobs in Michigan just as Snyder called for in his State of the State address Wednesday.

Tran fled war-torn Vietnam as a young child for a new home in Grand Ledge and is launching MentalNoteOnline.com, an electronic medical records company located at Detroit's TechTown.

Gupta grew up in New Delhi, India, and came to the U.S. to get his MBA from the University of Michigan. He and a partner formed one of the most-successful start-up companies in Ann Arbor's history, BlueGill Technologies. Gupta is now running his sixth start-up company, a software firm called Janeeva.

Gupta and Tran illustrate the benefits that educated immigrants can bring to a state like Michigan, which is losing residents and suffers from a double-digit unemployment rate.

Snyder is well aware of these immigrants' potential. In his speech Wednesday, the new governor said he plans to establish "an exciting new initiative to encourage immigrants with advanced college degrees to come to Michigan to live and work."
"Immigration made us a great state and country," Snyder said. "It is time we embrace this concept as a way to speed our reinvention."

He did not reveal any details of his plan. His initiative could draw opposition from anti-immigration groups and others.

But Snyder's remarks couldn't have come at a better time for Global Detroit, a group launched two years ago to figure out ways to attract more educated immigrants to the state.

Global Detroit, led by former state Rep. Steve Tobocman, released a study last year that outlined 11 steps Michigan can take to lure more of these kinds of immigrants. The study advocates, among other things, creating a regional cultural ambassadors program, working with officials in Windsor, to attract overseas companies and setting up an investor visa regional center in southeast Michigan.

So far, Global Detroit has obtained grant money to develop a "Welcoming America campaign" for the state. It hopes to soon get the money it needs to start implementing its other ideas.

"Immigrants have been huge job creators," Tobocman said. "We ought to be looking at everything we can to create the kind of Michigan we had in the 20th Century."

According to a 2008 report from the Brookings Institution, in 1900, 34% of Detroit's population was foreign-born. By 1970, their numbers had fallen to 7.1% of the city's population.

In his speech, Snyder said about half of Silicon Valley's start-up companies were founded by a foreign national. Global Detroit found similar trends in Michigan, where immigrants founded a third of all high-tech start-up firms from 1995 to 2005. Only California and New Jersey had more immigrant founders, Tobocman said.

This kind of immigration-based economic development strategy is working in Philadelphia, said Richard Herman, co-author of "Immigrant Inc." and an immigration lawyer in Cleveland. Rust Belt cities like Detroit, Pittsburgh and Cleveland are starting to embrace the concept.

"You can't create the new economy without internationals," said Herman, who views Snyder's comments as a sign of a cultural change under way in the Midwest.
For Michigan to succeed, though, job opportunities will be key, said Gupta and others.

One overlooked source of talented immigrants is foreign students. Michigan is home to 23,000 foreign students but little is done to connect them to Michigan employers, said Scott Cooper, an immigration attorney and partner at Fragomen, Del Rey, Bernsen & Loewy in Troy.

Tran said he has met many foreign students who want to stay in Michigan. He urges state officials to provide these students with the resources they need to turn their business ideas into reality, such as staffing its SmartZone offices with helpful people who care.

"Little things can make a difference," Tran said.

To retain these students, Gupta also urges state officials to focus on transforming Detroit and other large cities into desirable places to live. Foreign students "are used to living in big cities," he said. "They don't want to move to suburbia."


Source: http://www.freep.com/apps/pbcs.dll/a...te=fullarticle

[Lombaowski]

Good article, thanks for posting.

[professorscott]

I'm glad the new Governor understands this. We have an unfortunate tendency all over America to fear the recent waves of newcomers, yet it is precisely those who strengthen us and give us our vitality.

Very nearly all of us are immigrants or descendants of immigrants, and we will be better off if we not only understand but embrace the idea of newcomers helping us build our society and economy.

[downtownguy]

well said, professor scott

[muskie1]

I get into arguments all the time with people who have a problem with all the immigrant run business in the area. Their thought is always " how come I don't get to own one". Pretty much the reason that alot of new ventures are immigrant run is they will work their butts off and live a modest lifestyle,striving towards success. I just ask people if they would be willing to risk everything and work eighty plus hours a week.

I remember back in the early 70's my dad worked with a middle eastern gentlemen on the line at Ford. The guy worked any overtime possible. He had come here by himself,soon he was able to bring his wife over. They lived in a very low rent apartment,he took the bus to work. It was not to long before he saved enough to buy a store. He kept working on the line bringing more family over and buying more stores. He had said where he came from owning a business was an impossible dream. I think alot of us just get jealous when we see people pursue their dream as we coast along {myself included).

[noggin]

Those foolish immigrants. Can you imagine...they are so stupid they do not think they can live on the government dole.

[Richard]

I find it interesting how they become their own financial institutions .

For instance the Haitians come here with no money and are helped to get on their feet by those who came before them ,they get the first job they can no matter what the pay,then form blocks of groups sometimes up to 200 "investors"

How they work is a set amount of money is put into a pile even if it is $20 ,after you put the $20 in the next week is the next persons time and so on when there is enough into the pot for an investment the pot feeds that investment until it is profitable and the returns are also put into the pot, think of the snowball effect.

There is a different banking system that is in the shadows,so when you see that corner store in the hood chances are it is connected to 1000s more , the average corner store produces between 40 to 60 thousand a year, take 25% x thousands of stores filling the pot and it kinda gives you a picture of the impact on the economy using no mainstream banks.

[muskie1]

Those foolish immigrants. Can you imagine...they are so stupid they do not think they can live on the government dole.

Amen to that!

[REL]

http://www.modeldmedia.com/features/...oit%27campaign

[Hypestyles]

detroit city leadership should have plans in place to actively incentivize immigrants to settle in urban detroit..

[Callo]

I herped when I should have derped.

[bailey]

Those foolish immigrants. Can you imagine...they are so stupid they do not think they can live on the government dole.

And yet they can not be bothered to learn English.

[One Shot]

I have suspected this type of under the radar stuff for years and said the same thing. How does this benefit the surrounding city/state/country if they keep the funds within their circle.
Interesting

[1KielsonDrive]

Unlimited immigration is not the answer. Yes, educated and financially secure immigrants can help. We also should serve, in extreme cases, as a refuge, which was the founding basis of our country. If anyone implies that by opening the floodgates we're helping our society and our country, it's a ploy. We have no coherent immigration policies at this time, and likely won't for the foreseeable future because like everything else in the US today, it's a divisive issue used to further politicians and their monied backer's ideologies and interests.

[Richard]

Orlando Fl was a city where the realtors marketed large subdivisions exclusively towards a certain country based on that theory and by the thousands they came.

Orlando has now passed Detroit in crime.Who would have ever thought that.

[1KielsonDrive]

You know, politicians can come up with any number of outlandish ideas instead of knowing [[admitting?)the history that brought our country to what it was until recently: excellent education and excellent wages. We now pay more for education and make less wages than ever.

[Hermod]

I have suspected this type of under the radar stuff for years and said the same thing. How does this benefit the surrounding city/state/country if they keep the funds within their circle.
Interesting

While their investment funds recirculate within their community, the economic activity they produce [[buying, selling, employing) ripples through the entire economy.

[littlebuddy]

If someone is a smart, hardworking type of person and can live a life of sacrifice that is needed to make a go of something than great, come on in, but its to bad that so many Americans are distrustful and will not shop someplace that is run by immigrats, yet at the same time so many Americans are lazy and shiftless to make a go of anything. They can stay unemployed for years, know all the tv programs an what is going on in sports, yet can't lift a finger to make something of themselves. I think most hate immigrants because immigrants hold a mirror and people see their own reflection[[lazy,fat,stupid slobs) and hate what they see, yet take it out on some hardworking immigrant. Entitlement mindset

[GOAT]

You know, politicians can come up with any number of outlandish ideas instead of knowing [[admitting?)the history that brought our country to what it was until recently: excellent education and excellent wages. We now pay more for education and make less wages than ever.

Yes, the cost of education is ridiculous; and yes wages have not risen as quick as it should have. But it isn't the gov't that is buying the cheapest products on the market. It isn't the gov't lining up at the Chinese selling stalls like Wal-Mart, K-Mart, discount auto part stores etc. Nope! It is the same 'mericans looking to get a "deal" on something. We are our own worst enemy.

I will add that perhaps it is your idea that gov't needs to always solve the problems that could be the reason why the USa has lost it's edge over the last 40 years.

[tkelly1986]

If someone is a smart, hardworking type of person and can live a life of sacrifice that is needed to make a go of something than great, come on in, but its to bad that so many Americans are distrustful and will not shop someplace that is run by immigrats, yet at the same time so many Americans are lazy and shiftless to make a go of anything. They can stay unemployed for years, know all the tv programs an what is going on in sports, yet can't lift a finger to make something of themselves. I think most hate immigrants because immigrants hold a mirror and people see their own reflection[[lazy,fat,stupid slobs) and hate what they see, yet take it out on some hardworking immigrant. Entitlement mindset

You are spot on. This is extremely true for Detroit; people around here like to complain about not "getting theirs", but refuse to put in the effort to do so. The thing that will save this city is the same that built it; a wave of entrepreneurs. Detroit seems to lack this [[or at least the current population does). What happened to the entrepreneurial spirit of this city? New immigrants show that it is possible. They come here with no money, support or English language skills and build a life for them and their children. Detroiters, on the other hand, continue to sit on their couches and complain....go figure

[Locke09]

At least where the technology and engineering industries are concerned and where this region is concerned, I can speak from experience.

When immigrants come here and start up their companies, they hire predominantly people who come over here from their own country, on visas. Oh they include the token "American" here and there to help them get their foot into the door and get contracts. Armed with their tokens and their very cheap labor from their country, they win contracts that end up displacing American workers. Experienced and very competent American workers who, depending on their age, can forget about finding new jobs in this economy [[at least not in their field and at anywhere near the wages they had before).

Now this might be good for the economy, but some of that "good" is offset by the unemployment compensation that now has to be paid to former workers and any other public assistance they might require while they remain unemployed or underemployed. Some of that "good" is also offset by the fact that those displaced workers are not going to encourage their own kids to go into those fields where they are so easily replaced by cheap labor here on visas. Then the country starts pouting because not enough "Americans" are interested in taking the subjects that get them into engineering and technology jobs. Why should they?

Now, if those immigrants will hire predominantly people who are already residents, then that is a win-win situation - I think. I would be interested in seeing statistics nationwide on the percentage of American workers hired by immigrant start-ups vs. the percentage of new immigrants or people on visas hired by those same start-ups. And are we to assume those immigrants are or are becoming citizens? If they are not, how is it good for this country to become so dependent upon importing foregin products and foreign labor? And why do we need to provide jobs for foreign students when we cannot provide them for American students? How does this make sense, especially when we then turn around and call Americans "lazy"?

I speak from experience not because I have been displaced, but because I manage some of those contracts that have displaced American workers.